Sink Hole Investigation: Historic Photos Show South Dakota Operated Second Underground Mine in Hideaway Hills

State previously denied subsurface mining in the area

RAPID CITY, S.D. – Historic photographs from the 1960s provide evidence the state of South Dakota operated a second mine beneath portions of the Black Hawk area that began to collapse in April 2020, leaving homes in the Hideaway Hills subdivision worthless.

The photos, taken by the U.S. Department of Agriculture and other agencies, contradict state claims it conducted surface mining only. They also demonstrate that the whole neighborhood may be in danger of collapse, not just the portion that has done so already.

“We have been digging to find these pictures, and what they show is the state was doing plenty of digging too – underground, in the northwest part of the subdivision” says Kathleen Barrow of Fox Rothschild, who is seeking class action status in a lawsuit on behalf of 300 homeowners against the state. “This is further proof that the state of South Dakota is responsible for the danger my clients are facing and the damage to their homes and neighborhood.”

The photos show a mine entrance in the side of a cliff not far from where the state was also conducting surface mining.

“It’s pretty obvious it’s some kind of entrance to underground workings,” says Nick Anderson, a geologist in Rapid City. “What we can see in the photos matches testing we’ve done with electric conductivity and resistivity and other technology indicating voids beneath the surface.”

The photos also corroborate anecdotal evidence collected from older residents, who remember exploring the mine entrance in the northwest portion of Hideaway Hills when they were children.

For generations, the state operated gypsum mines throughout the region and still owns the subsurface and mineral rights. The lawsuit charges the state failed to properly remediate and maintain unstable land after the mining operation was shuttered in the early 1990s and surface property was sold to builders who developed Hideaway Hills. Homeowners were not informed of the hidden dangers to the land and their homes caused by the state’s mining activity and neglect, Ms. Barrow said.

Large sinkholes – collapsing mine cavities – that opened last year forced some Hideaway Hills homeowners to evacuate. Houses in the neighborhood cannot be sold as values have dropped to zero.

The state contends it is not responsible for the destruction, even though a trust fund created with revenue generated from the mining operation is now valued at over $330 million.

The case is Andrew Morse and John and Emily Clarke et al. v. State of South Dakota et al., No. 46CIV-20-000295 in the Circuit Court, 4th Judicial District, County of Meade, South Dakota.

For more information on Fox Rothschild, visit foxrothschild.com.




Day Pitney Expands Into Rhode Island

“Day Pitney LLP announced that it will expand its East Coast presence through a merger with Rhode Island-based law firm Howland Evangelista Kohlenberg LLP, a dedicated trusts and estates boutique handling complex and sophisticated planning, probate and trust matters for high net worth individuals and families. Nine attorneys, including name partners Renée A. R. Evangelista and A. Max Kohlenberg, will join the firm’s Individual Clients department, growing its ranks to nearly 80 attorneys, once the merger is completed effective July 1, 2021,” announced Day Pitney in their Press Releases.

“The combined firm will retain the Providence office and all personnel of Howland Evangelista Kohlenberg. The attorneys joining Day Pitney have experience in estate planning, estate settlement and trusteeship. Evangelista, admitted in Connecticut, Massachusetts, New York and Rhode Island, handles sophisticated estate planning and implements estate settlement techniques to save clients gift, estate and income taxes, while ensuring that their property passes according to their wishes. Kohlenberg, admitted in Massachusetts and Rhode Island, focuses on complex estate and trust planning, with particular emphasis on representing multigenerational family groups, professionals, executives and owners of closely held businesses.”

Read the announcement.




Tom Girardi Owes $56.8M to Law Firms, Lit Funders and Other Creditors

“Famed plaintiffs attorney Tom Girardi is on the hook for at least $56.8 million, according to the Chapter 7 trustee overseeing his estate,” reports David Thomas in Thomson Reuters Westlaw Today.

“In a 64-page report filed in Los Angeles bankruptcy court on Wednesday, Chapter 7 trustee Jason Rund of Sheridan & Rund, detailed the parties that have claims against the attorney, who was stripped of his law license earlier this month after a state court appointed his brother to manage his legal and financial affairs.”

“Girardi’s creditors include other law firms and litigation funders. The report doesn’t detail the circumstances surrounding the alleged debts. Rund and Robert Girardi’s attorney in the proceedings, Leonard Penda, did not respond to requests for comment.”

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Biglaw Firm Back with Special Bonus

“Way back in September 2020, when Biglaw firms were busy rolling back their COVID austerity measures, one firm decided to offer a sign of hope for all associates. After surviving salary cuts, furloughs, and sometimes even layoffs, their firms really did appreciate all of the hard work they were putting in during the pandemic,” reports Staci Zaretsky in Above the Law’s Biglaw.

“Cooley — a firm that hadn’t announced any compensation cuts — stepped up and offered special bonuses ranging from $2,500 to $7,500 for all associates and counsel. Of course, Davis Polk upped the ante (just like the firm did this spring), but Cooley deserves all the credit in the world. Now, the firm is here to match Davis Polk once again.”

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Former San Diego Assistant U.S. Attorney Promoted to Fox Corp. General Counsel

“Fox Corporation … announced the appointment of Jeff A. Taylor as General Counsel. Taylor, who joined FOX in 2019 as Executive Vice President and Chief Litigation Counsel, will oversee the Company’s legal function. Claudia Teran will remain Executive Vice President and Corporate General Counsel, as well as General Counsel of FOX Sports. Both Taylor and Teran will continue to report to Chief Legal and Policy Officer Viet D. Dinh,” announced Fox Corporation in their corporate press releases.

“Before joining FOX, Taylor served as Deputy General Counsel and Chief Compliance Officer for General Motors Co., and as the General Counsel of Raytheon Integrated Defense Systems. Taylor served more than 15 years in the federal government, including as the United States Attorney for the District of Columbia from 2006 to 2009, Counselor to the Attorney General, Counsel to the United States Senate Committee on the Judiciary, and Assistant United States Attorney for the Southern District of California. Taylor holds a B.A. in history from Stanford University and a J.D. from Harvard Law School. He currently serves on the Board of the Legal Aid Foundation of Los Angeles.”

Read the announcement.




Best Practices for Solar EPC Contracts

“For a variety of reasons, the solar industry has experienced, and will continue to experience, record growth. According to the Solar Energy Industries Association and Wood Mackenzie, a global energy and chemical research company, the U.S. solar industry grew 43% and installed a record 19.2 gigawatts (GWdc) of capacity in 2020, a pandemic year. Wood Mackenzie further forecasts that the U.S. solar industry will install a cumulative 324 GWdc of new capacity over the next decade,” post Richard Reizen and Patrick Johnson in Gould & Ratner’s Publications.

“Additionally, as we wrote in a previous article, one key driver of the construction industry in 2021 and beyond will be the approval of President Biden’s ‘Build Back Better’ plan. The plan is expected to include sizeable investments for infrastructure, manufacturing and clean energy projects.”

“Due to the anticipated demand for these types of projects in the coming years, particularly in the area of renewable energy, it is important to understand not only the benefits of clean energy but also best practices for solar construction contracts.”

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Incentive Stock Options (ISOs) versus Nonstatutory Stock Options (NSOs)

“In deciding how to best compensate employees in a startup, clients often consider stock options as a viable choice. But even once the decision is made to move forward with stock options, clients are still left to decide whether to grant Incentive Stock Options (ISOs) or Nonstatutory Stock Options (NSOs).”

Morgan Maccherone outlines the similarities and differences between these two forms of equity compensation in Hutchison PLLC’s Blog.

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Language in Declaration Makes Association Strictly Liable

“Defendant, Castletown Corner Owner’s Association, Inc. (“Association”), had a duty to maintain a lift station. Specifically, the declaration imposed an obligation on the Association to pay “all Maintenance Costs in connection with” improvements constructed at the Association. Maintenance costs are then defined as “all of the costs necessary to maintain the … sewers, utility strips, and other facilities … and to keep such facilities operational and in good condition, including, but not limited to, the cost of all upkeep, maintenance, repair, replacement … for the continuous operation of such facilities.” Plaintiff, owner of one of the commercial units, sued the Association for failing to properly maintain the lift station after an incident where the sanitary lift station malfunctioned and flooded the building with human sewage, which allegedly caused Plaintiff’s tenant to terminate its lease.”

“Did the Association breach the Declaration (contract) by failing to keep the lift station continually operable?” asks Billie Jo Fatheree in Husch Blackwell’s Litigation.

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FERC Refines DER Wholesale Market Participation Rules

“On March 18, 2021, the Federal Energy Regulatory Commission (“FERC”) issued an order on rehearing of its landmark final rule, Order No. 2222, pertaining to the participation of distributed energy resources (“DER”) through an aggregator in FERC-jurisdictional Regional Transmission Organization (“RTO”) and Independent System Operator (“ISO”) organized markets.[1] While FERC largely kept Order No. 2222 intact, Order No. 2222-A did refine and clarify certain aspects of Order No. 2222,” discusses Blake Urban in Bracewell’s Energy Legal Blog.

“The significant refinements made through Order No. 2222-A include:

  • Refinements on information sharing and the review process associated with qualification of DER to participate in the wholesale markets through an aggregator by distribution utilities;
  • A holding that demand response that is included in heterogeneous aggregation (i.e., the DER aggregation is not solely composed of demand response resources as the type of DER) will not be subject to the “opt-out” and “opt-in” requirements established by Order Nos. 719 and 719-A for demand response;
  • A finding that FERC’s interconnection policies pertaining to Qualifying Facilities (“QFs”) do not apply to QFs requesting interconnection if that QF only seeks to participate in the RTO/ISO wholesale markets through a DER aggregator; and
  • Clarifications on restrictions to avoid double counting of services.”

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Kelly Law Partners Attorney Chanda Feldkamp Joins International Association of Defense Counsel

Chanda FeldkampThe International Association of Defense Counsel (IADC) has announced that Chanda M. Feldkamp, a partner at Kelly Law Partners, LLC, in Denver, has accepted an invitation to join the IADC, the preeminent invitation-only global legal organization for attorneys who represent corporate and insurance interests.

Feldkamp focuses her practice on employment, insurance coverage, professional liability and commercial litigation, as well as class actions.

Feldkamp is AV Preeminent rated and AV Distinguished rated. She is a member of the Professional Liability Attorney Network and of the board of the Colorado Bar Association Labor and Employment Law Section.

Feldkamp received her J.D. (with honors) from Washburn University School of Law and her Bachelor of Science from Kansas State University.




Duane Morris Welcomes Trial Partner Michael J. Rinaldi in Philadelphia

Michael J. Rinaldi has joined Duane Morris LLP as a partner in the firm’s Trial Practice Group in its Philadelphia office. Prior to joining Duane Morris, Rinaldi served as deputy chief of the Economic Crimes Unit of the U.S. Attorney’s Office in the Eastern District of Pennsylvania.

As deputy chief of the Economic Crimes Unit at the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Rinaldi investigated, prosecuted, and supervised the investigation and prosecution of financial crimes, including securities and commodities fraud, bank fraud and money laundering. He litigated all stages of criminal prosecutions, including through trial. Rinaldi also managed relationships with regulatory agencies, including the U.S. Securities and Exchange Commission, the Pennsylvania Department of Banking and Securities and the Financial Industry Regulatory Authority. He previously served as trial attorney in the Securities and Financial Fraud Unit of the Fraud Section, investigating and litigating matters related to securities fraud, commodities fraud, procurement fraud and insider trading. Prior to his work for the U.S. Department of Justice, Rinaldi was senior trial counsel at the U.S. Securities and Exchange Commission.

Rinaldi is a graduate of the University of Pennsylvania Law School (J.D., cum laude, 2002), where he was senior editor of the Journal of Constitutional Law, and Villanova University (B.A.H., B.A., magna cum laude, 1999).




USC Agrees to $852M Payout in Sex Abuse Lawsuit

“The University of Southern California has agreed to an $852 million settlement with more than 700 women who have accused the college’s longtime campus gynecologist of sexual abuse, the victims’ lawyers announced Thursday,” reports Stefanie Dazio in StarTribune’s Nation.

“It’s believed to be a record amount for such a lawsuit. When combined with an earlier settlement of a separate class-action suit, USC has agreed to pay out more than $1 billion for claims against Dr. George Tyndall, who worked at the school for nearly three decades.”

“Tyndall, 74, faces 35 criminal counts of alleged sexual misconduct between 2009 and 2016 at the university’s student health center. He has pleaded not guilty and is free on bond.”

“Hundreds of women came forward to report their allegations to police but some of the cases fell outside the 10-year statute of limitations, while others did not rise to the level of criminal charges or lacked sufficient evidence to prosecute. Still, he faces up to 64 years in prison if convicted.”

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Am Law Top 20 Firm Antes Up With Special Bonus Bucks For Associates, Counsel

“Which firm is the latest to fall in line and offer up bountiful bonuses in recognition of its attorneys’ hard work?,” reports Staci Zaretsky in Above the Law’s Biglaw.

“That would be Paul Weiss. Chairman Brad Karp sent a memo yesterday evening detailing all of the hard work associates and counsel had put in during 2020 and beyond, including work for their communities in the firm’s coronavirus relief center and for its racial justice, social justice, and voter-protection initiatives.”

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Debevoise to Pay Extra Bonuses in ‘Time of Exceptional Demands’

“Debevoise & Plimpton’s associates and counsel in the U.S. will receive special bonuses in June and September of this year, as Big Law seeks to reward lawyers for their hard work during Covid-19 and to retain valuable talent,” reports Rebekah Mintzer in Bloomberg Law’s Business & Practice.

“The dual cash payouts will total between $12,000 and $64,000 depending on the attorney’s seniority, according to a firm memo obtained by Bloomberg Law late Wednesday. This is on par with the totals offered by others over the past week, including fellow Wall Street firms Davis Polk & Wardwell, Milbank, and Paul, Weiss, Rifkind, Wharton & Garrison.”

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Tesla Taps Walmart Ethics, Compliance Chief for New Legal Role

“Tesla Inc., which has faced accusations of lax in-house legal management, has hired a new compliance leader from Walmart Inc.,” reports Brian Baxter in Bloomberg Law’s US Law Week.

“David Searle, a former federal prosecutor who joined Walmart in 2019, became deputy general counsel and senior director of compliance at Tesla last month, according to his LinkedIn profile.”

“He spent nearly the past two years as international chief ethics and compliance officer at Walmart, which in recent months made changes to its compliance personnel.”

“Searle’s move to Tesla comes as his new employer grapples with a recently unsealed lawsuit accusing it of refusing to hire law department leaders willing to stand up to the company’s voluble co-founder and CEO, Elon Musk.”

Read the article.




Judge Awards Texas Mother $1.7M in Wrongful Death Lawsuit Against Restaurant 

PMR Law trial lawyer Brent Phelps secures verdict in pedestrian death  

CONROE, Texas  Montgomery County judge has returned $1.7 million final judgment against Golden Chopsticks restaurant in The Woodlands, Texas, for the death of 27-year-old Bobby Joe Johnson, who was walking to his apartment when he was hit by one of the restaurant’s delivery drivers.

The final judgment on March 24 from District Court Judge Kristin Bays awarded Johnson’s mother, Telina Wheaton, over $1.6 million individually. In addition, the judgment included $136,323, plus prejudgment interest, and all court costs, for Johnson’s estate.

According to the lawsuit, Johnson was walking to the apartment he shared with his mother around 8:30 p.m. on April 2, 2019, when he was struck by the delivery driver as he crossed the street on F.M. 1488 in Conroe. Johnson spent two days in the emergency room before he died on April 4, 2019, from a blunt force injury.

The case is Telina Wheaton, individually, and as the representative of the estate of Bobby Joe Nathan Johnson vs. Mingrun D/B/A Golden ChopsticksCause No. 20-02-02017, in the 284th District Court in Montgomery County, Texas.




Ball Janik LLP Welcomes Real Estate Attorney Doug Stanford to the Firm’s Orlando Office

Ball Janik LLP, a construction defect and property damage law firm with offices in Florida and Oregon, is pleased to announce that Doug Stanford, Jr. has joined the firm’s Orlando office. Stanford is a real estate attorney in the Construction Defect practice, strengthening Ball Janik’s continual commitment to its clients.

Stanford focuses his legal practice on representing residential owners in the pursuit of complex construction defect claims. Prior to joining the firm, Stanford spent his career handling complex construction defect matters on behalf of owners throughout Northeast Florida. Stanford has significant experience in appellate matters focused on pursuing justice on behalf of owners in complex construction matters, including first-party property damage claims, contract disputes, and failure of real estate sellers to disclose latent defects.

Stanford is a member of The Florida Bar Appellate Practice and the Real Property, Probate & Trust Sections. He received his J.D. from the Florida Coastal School of Law, and his bachelor’s degree from Georgia State University.




Duane Morris Welcomes Corporate Partner Hernan Gonzalez Moneta in New York

NEW YORK, March 23, 2021—Hernan Gonzalez Moneta has joined Duane Morris LLP as a partner in the firm’s Corporate Practice Group in its New York office. Prior to joining Duane Morris, he was an attorney at Reed Smith LLP. Gonzalez Moneta joins on the heels of the addition of three partners from Reed Smith LLP – David M. Hryck, Christopher W. Healy and C. Neil Gray – and economist Theodor J. van Stephoudt in New York on March 15.

Gonzalez Moneta advises clients with respect to Mexican and international tax and corporate matters, including all aspects of cross-border transactions, interpretation and application of tax treaties, mergers and acquisitions, corporate reorganizations, permanent establishment issues, licensing structures, tax compliance, transfer pricing, foreign tax credit planning and expatriates’ tax regime, as well as research and development of tax incentives. He concentrates his practice on international tax planning and guides clients in the implementation of their multijurisdictional business structures. Gonzalez Moneta also has broad experience in advising individuals and international families, celebrities and entertainers with their international endeavors. He is recognized as a trusted advisor for ultra-high-net-worth individuals and global families with focus on cross-border gift and estate planning structuring and succession governance. In addition, he has substantial experience in representing taxpayers undertaking voluntary disclosures under the IRS Offshore Voluntary Disclosure Program. He also assists clients with the negotiation of private letter rulings concerning international transactions, including the lobbying and prosecution of administrative matters before Mexican federal and state authorities. Gonzalez Moneta has drafted tax reform proposals concerning clients’ benefits, which were discussed and passed by the Mexican Legislature. Likewise, he has advised Mexican federal government agencies regarding compliance given to legal and payment obligations under major media campaigns. Gonzalez Moneta has also determined for the Mexican operations of major international groups value-added tax (VAT)-efficient strategies for imports and exports, as well as assisting them in securing large VAT refunds. In addition, Gonzalez Moneta has successfully handled several tax, administrative and intellectual property litigation procedures.

Gonzalez Moneta is a graduate of Georgetown University Law Center (LL.M., 2010) and the Universidad de Monterrey (J.D., 2001, B.A., 2003).




Akerman Expands National Litigation Practice Group in Denver with Adam Massaro

Akerman LLP, a top 100 U.S. law firm, has expanded the national footprint of its Litigation Practice Group with the addition of Adam Massaro in Denver. Joining from Lewis Roca Rothgerber Christie, Massaro brings with him valuable first-chair trial experience in complex business litigation and provides important business counsel to clients internationally.

Massaro practices in the areas of intellectual property and corporate litigation often involving complex, multi-million dollar high stakes matters. He represents clients in the cannabis industry in both state and federal court, including obtaining a complete defense win at trial for a client, obtaining injunctive relief for a plant-touching entity, and enforcing Cannabis intellectual property rights. He works with clients on intellectual property matters in a broad range of areas, including software, internet-based technologies, industrial equipment, and sporting goods. He has litigated intellectual property and high technology cases in Colorado, California, Nevada, and Arizona federal district court. Massaro also has represented international clients ranging from South Korea to India on matters such as trade secret, trademark, patent, and corporate litigation.

The expansion of Akerman’s Litigation Practice Group in Denver is part of a national growth strategy to further serve clients’ business needs. The team also recently expanded in Houston, with litigation partners Joel Mohrman and Andy Cao who have experience in intellectual property litigation, class actions, and complex commercial litigation; and litigation partner William Sentell who focuses his practice on franchise dispute resolution and related corporate, regulatory, and compliance matters.




Davis Polk is Again the Firm to Beat on Associate Bonuses, With Payouts up to $64K

“New York’s Davis Polk & Wardwell, whose fall 2020 bonuses set the standard for top law firms looking to reward pandemic-weary associates, said Monday it will give associates extra bonuses in the spring and fall of 2021, too. The special 2021 bonuses range from $12,000 combined for the class of 2020 up to $64,000 for the class of 2014 and earlier,” reports Reuters Legal in Thomson Reuters Westlaw Today.

“Associates will be paid between $4,500 and $24,000 on April 26 and then from $7,500 up to $40,000 on September 30, according to an internal memo reviewed by Reuters. They’ll also get a typical year-end bonus.”

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